Let’s start with the shortcomings of the existing OTC platforms.
Traditional OTC-Desk work in analog mode or through connection to centralized exchanges in order to have an ccess to high liquidity. With this trading method, the personal data of the participants become public for a wide range of people, what is already unsafe. Despite the fact that such data is collected by companies in accordance with the rules of confidentiality, there are cases of using such data by employees for personal gain. These factors undermine trust and reduce the demand for over-the-counter trading for those who want to stay confidential.
Another important disadvantage of existing OTC trading procedure is that centralized exchanges offer to first deposit their company account in order to be able to buy the requested asset. Many buyers are afraid to do this, as there are high risks of blocking the transaction by the bank, as well as a small level of credibility. It turns out that today there are no ways to protect the confidential data of participants in major transactions, and even more — on over-the-counter platforms. Blockchain is known to be transparent, what ncrease confidence, but when it comes to large transactions, data requires high confidentiality.
Barter: smartplace offers cryptographic encryption of confidential data of participants of the transaction in order to provide them with maximum protection using the privacy protocols of the blockchain. This data will be encrypted and therefore not accessible to others. The accuracy of personal data is confirmed by the record in the blockchain.
Trading with smartplace does not require deposit of a separate company account, it is enough to have funds in your personal bank account, if we talk about a transaction using fiat funds. Through integration with banking institutions by API, with the buyer’s agreement, the client’s balance on the smartplace will be displayed with the balance in the bank account, which is proof of the subject matter for the transaction. With this approach, the client will always be confident in the safety of their savings, and he does not need to trust the company to give his money, and there is also no time limits to transfer funds and bank transfer fees.
To conduct barter transactions, all you have to do is to have funds in your bank account and agree to connect it to your smartplace account to make a deal. When the transaction is completed, the funds do not participate in the transactions, the smart contract replaces the data of one participant with the personal data of the other participant on the basis of the transaction signed by the parties.
For example, the parties concluded an agreement to sell real estate for fiat funds. Having integration with banking APIs and the register of property owners, it is possible to make a deal without participating in transactions, thus freeing the financial system from unnecessary transactions. When a barter agreement is signed by the parties to the transaction, their personal data is reversed, that is, the bank account now belongs to the seller of the property, and the property to the buyer. All this is performed on a smart contract system with the replacement of data on the owners of assets in the relevant registries on the basis of a concluded legal contract.
This is just one of many examples of barter deals. Barter: smartplace can become a leading platform for bargaining agreement, and potentially seeks to help banks relieve transactional burdens, which will also be beneficial for the entire global financial system.